Economic conditions on the upswing

Boxes stacked in a shed.

(06.09.2023) The Swiss economy is rebounding slightly but remains sluggish. The Swiss Economic Institute's (KOF) barometer at the Swiss Federal Institute of Technology Zurich (ETH Zurich) stands at 92.2 points (+1.5 points compared to June) and therefore remains below the long-term average.

Although most indicator groups continue to perform below average, the overall trend seems to be heading upward again, following three consecutive declines between April and June. Prospects are particularly brightening for service companies, financial and insurance service providers, foreign affairs, and domestic consumption.

Indicators regarding capacity utilization and employment trends in the production sector (manufacturing industry and construction) appear to have stalled in July. However, indicators related to order books suggest an improvement.

Nevertheless, the construction activity and manufacturing industry are facing a rather challenging situation, notes the Zurich observatory.

Within the manufacturing industry, indicators for companies active in metallurgy and textile and clothing manufacturing show a decline. Producers of paper and printed products, companies in the wood, glass, stone, and earth sector, the machinery industry, as well as the chemical and pharmaceutical industry seem to be going through a more favorable period.

After a spectacular rebound just after the health crisis in the summer of 2021, the KOF indicator started a downward trend that ended in November 2022 (89.4). Since then, the indicator has fluctuated but has never risen above the average (100).


Last modification 06.09.2023

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